Each time I open Netflix, I see my dad’s profile complete with the Netflix character he chose (Spirit the horse) and I am reminded that, sadly, he is no longer with us. Even more upsetting is that my dad was the one paying for the Netflix account and his yearly paid in advance membership is also about to expire. The final slap in the face came yesterday when Netflix announced it was scrapping its cheapest ad-free tier, meaning that when I inevitably do create my own account, I will have to pay more. Bad for me, good for investors – Netflix was able to add six million new subscribers last quarter.

The lowdown

• 🎬 Netflix adds six million new subscribers, a sign its password sharing strategy is working.

• 📉 Goldman Sachs profit falls 58%, as investment banking activity reaches 10-year lows.

• 🪵 Former journalist and billionaire VC Michael Moritz to leave Sequoia Capital after 38 years.

Flex your finance muscle 💪

Central bank digital currency

A CBDC is a type of digital currency issued and regulated by a country's central bank. Unlike cryptocurrencies like Bitcoin, which are decentralized and not controlled by a specific entity, CBDCs represent a digitized version of a country's sovereign currency. They are considered more of a digital counterpart to physical banknotes and coins.

CBDCs could enable real-time transfers and payments without needing intermediaries such as banks or clearing houses, and have the potential to improve financial inclusion. Another pro (or possibly con) is that CBDCs could make it harder for illicit activities and tax evasion to take place, as the central bank could track the location of each unit of currency. Clearly this leads to challenges around privacy.

Several countries including China, the Bahamas, the Eastern Caribbean, Nigeria, Jamaica, and India have already implemented some form of CBDC, while many others are actively exploring the concept. Read more about Jamaica’s struggle to get people to sign up to its CBDC platform here.

Featured story

Activist investor buys stake in Gucci owner Kering

Activist investment firm Bluebell Capital has acquired a stake in Gucci owner Kering and is advocating for change within the company. One item on Bluebell’s list is to explore a merger with rival luxury group Richemont, owner of the brand Cartier.

Bluebell is known for successfully driving change at companies including Glencore, Bayer, Vivendi, Danone – and even Richemont and Kering's share price increased by 7% following reports that it had met with Bluebell representatives.

Kering has already started implementing some changes, including a top management reshuffle ($) intended to achieve similar growth rates to LVMH and Hermès. So if you haven’t seen the film House of Gucci yet, get to it because, with all this excitement, we may be in for a sequel.

The content we're consuming today

• The Economist: The fertility sector is booming ($).

• Behind the Money podcast: Macquarie’s grip on global infrastructure.

• Aswath Damodaran’s Musing on Markets: Market Resilience or Investors In Denial? A Mid-year Assessment for 2023!

Off-balance sheet items

• Regular readers no doubt know a lot about companies and markets but, if you would like your knowledge to be a little more well-rounded in preparation for your next game of Trivial Pursuit, check out The Economist’s summer science lessons podcast.

The bottom line